1:00PM NY, 5:00 PM Frankfurt European markets finished mixed. Chemical stocks advanced.

European stock markets closed mixed Monday after a volatile session. Stocks were supported by gains in the chemicals sector and strong earnings which managed to offset continuous credit market concerns. Germany closed up 0.1% at 7,456.31, France ended unchanged and the U.K.''s fell 0.2% to 6,206.10.

In Frankfurt shares of IKB tumbled 20.1% after the lender acknowledged losses from its exposure to the U.S. subprime mortgage market. Among other movers, property investment firm Hypo Real Estate fell 3.8%, while Linde shares increased 5.4% on higher first-half profit.

In Paris Michelin climbed 3.8% after Societe Generale raised its share-price estimate on the tiremaker. Among other gainers, Schneider Electric added 1.8 %, while Rhodia rose 3.6% ahead of earnings report. On the side of the losers, Societe Generale dropped 1.8%, while Dexia, Belgium''s third-biggest financial-services company, fell 1.7%.

In London the financial-services sector was still under pressure with shares of hedge fund Man Group down 3%. HSBC Holding erased earlier gains to close up 1.4% after the bank reported a 25% increase in first-half profit. In the chemicals sector, ICI rose 7.2% after it rejected a second all-cash offer from Dutch chemicals group Akzo Nobel. ICI said that the offer worth 7.76 billion pounds ($15.8 billion), is still not high enough. Akzo Nobel shares lost 1%..


11:30AM U.S. stocks traded in a lackluster fashion.

U.S. stocks continued to trade in a lackluster fashion, as traders remained somewhat concerned about the outlook for the markets after the heavy sell-off last week. However, deal news and strong financial results at HSBC Holdings (HBC: chart) helped limit the downward trend.

Dow component Boeing (BA: chart) supported the blue-chip average with a gain of 1.7%, followed by Home Depot Inc. (HD: chart), rising 1.6%. At the same time General Motors Corp. (GM: chart) weighed with a decline of 1.8%.

Verizon Communications (VZ: chart) was another drag on the Dow. The wireless communications provider posted an in-line-with-forecast 6% rise in profit, as well as a plan to buy Rural Cellular (RCCC: chart) for $2.7 billion. Verizon lost 1.9%, while Rural soared 33%.

Computer hardware sector posted a notable decline, with Lexmark (LXK: chart) falling 4% and Apple (AAPL: chart) losing 2.5%. Oil service, airline, and biotech stocks also came under pressure.

By late morning, the Dow fell 22.11, or 0.17%, to 13,243.36, after rising in earlier trading. The Standard & Poor''s 500 index fell 1.36, or 0.09%, to 1,457.59, and the Nasdaq composite index fell 4.01, or 0.16%, to 2,558.23. Bonds fell modestly, and the 10-year Treasury note''s yield edged up to 4.78% from 4.77% late Friday.


09:45AM Wall Street opened higher, but failed to sustain early gains.

Wall Street opened in the positive but soon afterwards declined as market failed to sustain the upward move after last-week selloff. Solid results from HSBC Holdings (HBC: chart) brought some relief as the biggest European bank reported a 25% profit rise and said bad debts in the U.S. were nearly the same as last-year levels. The stock rose 3.2%.

Deal news failed to offset negative sentiment. South Korean Doosan Infracore agreed to buy Ingersoll-Rand''s (IR: chart) Bobcat construction equipment unit for $4.9 billion. ABN Amro (ABN: chart) withdrew its recommendation of a takeover bid from Barclays (BCS: chart) citing the current value of the U.K. lender''s offer. ABN Amro gained 1.6%.

Strong earnings from some retailers helped limit losses. Humana (HUM: chart) jumped 3% and Tyson (TSN: chart) gained 3.3% after posting better-than-expected Q2 results. However, shares of RadioShack (RSH: chart) weighed on the retail sector with a decline of 10% after posting better-than-expected earnings but 15% lower sales.

In the first hour of trading, the Dow Jones industrial average fell 1.70, or 0.01%, to 13,263.77. The Standard & Poor''s 500 index rose 0.19, 0.01%, to 1,459.14, and the Nasdaq composite index fell 0.30, or 0.01%, to 2,561.94. Bonds held steady, with the 10-year Treasury note''s yield at 4.77%, the same as late Friday.


9:00AM U.S. stock futures pointed to a recover after a week of heavy losses.

U.S. stock futures pointed modestly higher on Monday, with markets trying to recover from heavy losses and four-year lows amid continued concerns in the credit market. Subprime worries subsided Monday after HSBC Holdings (HBC: chart), Europe''s largest bank, reported a 25% profit rise. It also said bad debts in the U.S. were nearly the same as last-year levels as it stopped underwriting subprime mortgages.